Azerbaijan.US
Azerbaijan has introduced a new tax regime for income earned from renting out residential property, with a 10 percent tax to be withheld at the source of payment.
The change follows amendments to the country’s Tax Code approved by President Ilham Aliyev. Under the updated rules, income earned by individuals from leasing residential premises to other individuals will be subject to a 10 percent tax. The measure does not apply to hotels or hotel-type accommodation facilities.
According to the amendments, if rental payments are made by a person who is not registered with the tax authorities, the obligation to pay the tax falls on the landlord or a designated tax agent. In such cases, the applicable tax rate will be 10 percent for residential leases and 14 percent for commercial rentals.
Landlords subject to the new requirements will also be required to register with the tax authorities and submit the relevant tax declarations in accordance with the law.
The changes are part of broader efforts by the government to formalize rental income and strengthen tax compliance in the property sector.
